House Price Trends 2014 – The Experts’ Views

Hurrah! It’s the New Year – 2014 awaits us and it’s likely to be a pretty exciting one for the property market. Last year was indeed interesting – from Help to Buy, to house prices increasing, to the introduction of Capital Gains Tax for foreigners in the Autumn Statement in December – there sure was a lot going on.

However, what does the year ahead have in store? It’s never easy to predict everything, but we asked our experts to peer into their crystal balls and dispense some of their nuggets of wisdom…

John Collard, Director, Robert Holmes, an estate agents in Wimbledon, predicts that prices in Greater London will catch up with Central in 2014:

“There’s not much doubt that next year will mean higher house prices for home owners. We believe that areas such as Wimbledon and Coombe will strengthen, when it comes to properties above £2,000,000. There also continues to be strong demand below £2,000,000 where Stamp Duty rates are lower. Experts have predicted that Greater London will catch up with Central London in 2014 and the largest building society in the UK, Nationwide, has said the supply of new homes is still scarce – contributing to an 8.4 percent annual rise in house prices; the biggest since June 2010.”

More information about house price trends from Robert Holmes

Laurence Glynne, Partner, LDG, an estate agents in Central London, says that the introduction of Capital Gains Tax on foreigners won’t have a big influence on the market:

“The biggest news to come out of the Autumn Statement was the widely anticipated news that Capital Gains Tax is being introduced for overseas buyers from April 2015. Currently UK citizens pay up to 28 percent on second homes and this has now been extended to foreign investors. However, this is unlikely to have a massive influence on the market going forward into 2014 because London remains a safe place for investors to put their money.”

More information about house price trends from LDG

Richard Symes, Director, Eden Harper, estate agents in Battersea, says that supply and demand is the factor to watch:

“Along with historically low mortgage rates, consumer confidence as the economy seems to be picking up and Help to Buy (which we will talk about below), demand is likely to be continued to be fuelled as the amount of people wanting to buy property outstrips the available property on the market. However, what’s interesting is that at a local level, just a couple of weeks after New Year, there are already signs that new properties are coming onto the market. From a supply and demand perspective, if this materialises as new instructions, it’s likely to slow price increases.”

More information about house price trends from Eden Harper

Alistair Boscawen, Partner, Best Gapp, an estate agents in Chelsea, predicts that next year will bring much of the same in terms of price increases:

“The general view is that next year will bring more of the same for homeowners in terms of house prices increasing.I predict that prime areas such as Chelsea, Mayfair and Belgravia will increase by five percent.”

More information about house price trends from Best Gapp

Cary Hammond, Head of Marketing at Garton Jones says that prices will continue to rise, especially in key areas:

“It is expected that property prices in Central London will continue to rise in 2014, regardless of the “bubble” some speculators feel the market is experiencing. I agree with this, especially throughout Westminster and the South Bank/Nine Elms where demand is at an all time high. There will be more off-plan schemes coming to the market at various stages this year and if recent demand is anything to go by I fully anticipate more record breaking deals to be done.”

More information about house price trends from Garton Jones

Carla Bradman, Marketing Manager at Paramount Properties, an estate agents in West Hampstead, says that transport links are vital:

“Last year we polled local residents to see what their main priorities were when choosing an area to live in. 70 percent said transport links, and this year we expect transport to continue to be their main priority when choosing an area to live in.”

Time will only tell as to what 2014 brings. However, it’s likely it will be another prosperous year for the property industry and could be the perfect time to move or sell your home!